Information Services (ISC) Sidoti Small-Cap Virtual Conference summary

Business overview and financial performance

• Operates in registry operations, services, and technology solutions, serving government, legal, and financial clients in Canada and internationally.

• Reported CAD 62 million in Q4 2024 revenue and CAD 21 million in Adjusted EBITDA; annual revenue guidance for 2025 is CAD 257–267 million.

• Pays a quarterly dividend of CAD 0.23, with over CAD 150 million paid since IPO.

• Registry operations, underpinned by a long-term contract with Saskatchewan, provide stable, predictable cash flow.

• Services segment has grown from CAD 12 million in 2015 to over CAD 110 million, driven by organic growth and M&A.

Growth strategy and market positioning

• Aims to double revenue and Adjusted EBITDA from 2023 levels by 2028, targeting CAD 430 million in revenue and up to CAD 150 million in Adjusted EBITDA.

• Growth to be achieved through a mix of organic expansion, especially in services, and accretive M&A, with a preference for deals above CAD 50 million.

• Registry technology upgrades support both operational improvements and new business opportunities.

• International expansion focuses on markets with similar legal frameworks, with technology solutions already serving clients in Europe.

• Competitive advantages include long-term contracts, customer service focus, and a strong management team.

Financial structure and capital allocation

• Maintains a CAD 250 million credit facility and a CAD 240 million shelf prospectus; current debt is CAD 167 million.

• Target leverage is 2–2.5x EBITDA, with flexibility up to 4–5x for quality assets.

• Capital allocation prioritizes growth, followed by maintaining a stable dividend; sustaining CapEx typically CAD 2–4 million annually.

• Dividend policy is board-driven, with a commitment to stability and growth.